HEG, Graphite India Gain Up To 14% In A Weak Market
- Share.Market
- 2 min read
- Published at : 27 Mar 2026 12:59 PM
- Modified at : 27 Mar 2026 12:59 PM
Shares of HEG and Graphite India gained over 14% on Friday in an otherwise weak market, after GrafTech International increased graphite electrode prices by $600-$1,200 per tonne, depending on region, effective immediately on uncommitted volumes.
GrafTech, a US-based industry leader in the graphite electrode domain, holds an estimated 25-30% market share in ex-China market.
A price hike from such a player is seen as a positive for domestic players such as Graphite India and HEG, which were also under profitability pressure on account of a subdued pricing environment globally.
For perspective, the price increase by GraftTech was in response to lower graphite electrode prices over the past few years (below sustainable levels, leading to EBITDA loss for the company in Q4CY25), coupled with a rise in raw material costs amidst the ongoing geopolitical conflict.
Graphite electrodes are used in electric arc furnace (EAF) based steel mills and is a consumable item for the steel industry. However, the primary raw materials used are crude oil derivatives.
Therefore, Graphite India, along with other graphite electrode manufacturers, is exposed to the cyclicality in steel and crude prices.
GRAPHITE
HEG, in its Q3 earnings conference call on February 11, 2026, said that customer demand remained muted due to cautious procurement behaviour and sustained pricing pressure, particularly from elevated steel export out of China. And these demand conditions remained uneven across all the regions.
While near-term visibility remains limited, disciplined supply, improving utilization trends in certain markets, and the continued shifts from electric arc furnace steel making provide support to the medium-term industry fundamentals, the company said.
HEG
